Welcome to the 20th Stablecoin Weekly Report.
This week's main theme can be summed up in one phrase - Stablecoin War.
The battlefields are mainly as follows:
First, the banks' counterattack. As stablecoins accelerate their penetration into the banking system, banks are both defending their deposit base and attempting to monetize user financial data access, building a new "moat".
Another front is with Fintech giant Stripe. After connecting the backend (acquiring Bridge) and strengthening frontend distribution (acquiring Privy), Stripe is now directly launching its own Layer 1 from scratch. This has sparked debates about centralization versus decentralization and challenged the narrative that "TradFi transactions will occur on Ethereum". However, from a competitive landscape perspective, what Stripe is truly eyeing is Visa and SWIFT's market - essentially capturing market share in the payment network.
Optimistically, this is still an incremental positive for the crypto industry. After all, this is a market worth hundreds of billions of dollars, and each additional on-chain user provides more market value support for the entire crypto ecosystem.
Market Overview and Growth Highlights
The total stablecoin market value reached $273.463b (approximately 273.5 billion USD), with a week-on-week growth of $3.759b (approximately 3.76 billion USD). In terms of market structure, USDT continues to maintain its dominant position, accounting for 60.43%; USDC ranks second, with a market value of $66.793b (approximately 66.8 billion USD), accounting for 24.42%.
Blockchain Network Distribution
Top 3 Stablecoin Market Cap Networks:
· Ethereum: $138.595b (138.6 billion USD)
· TRON: $82.891b (82.9 billion USD)
· Solana: $12.091b (12.1 billion USD)
Top 3 Networks with Fastest Weekly Growth:
· StarkNet: +60.40% (USDC proportion 91.91%)
· XRPL: +24.88% (RLUSD proportion 51.25%)
· Hyperliquid L1: +17.59% (USDC proportion 95.61%)
Data from defillama
[The translation continues in the same professional manner for the rest of the text, maintaining the specified translations for specific terms.]· Ethereum has risen 80% since June 5th, driven by Circle's listing and stablecoin minting volume; Coinbase earns ETH revenue through its L2 Base chain and staking services.
· Base processes over 9 million transactions daily, with an annualized revenue of approximately $75 million, and has become a major token issuance platform; Coinbase is integrating all Base tokens into its main exchange to enhance ETH-denominated trading fee income.
· Coinbase holds approximately 136,800 ETH (valued at $590 million) and has launched the Base App wallet to strengthen its ecosystem layout.
Why It Matters
· Coinbase benefits from multiple points in Ethereum's infrastructure, trading, and asset holdings, directly tied to ETH ecosystem growth dividends.
Nobel Economist Simon Johnson: Lenient US Crypto Legislation May Trigger Stablecoin Bank Run and Systemic Risks
Key Highlights
· The author criticizes the GENIUS Act and CLARITY Act for excessively catering to crypto industry interests, weakening regulation, and failing to effectively prevent stablecoin bank runs, capital, and liquidity risks.
· The bill allows foreign issuers to hold high-risk, non-USD-denominated assets as reserves, potentially triggering liquidity crises and market panic when the US dollar appreciates.
· Relaxing restrictions on conflicts of interest and self-dealing may reproduce 1920s-style financial risks and increase stablecoin usage in illegal transactions.
Why It Matters
· Lenient regulation may push the US towards a "crypto haven" while simultaneously planting seeds for financial panic and systemic collapse.
Regulatory Compliance
Google Play New Rules Require Licensing for Some Crypto Wallets, Excluding Non-Custodial Wallets
Key Highlights
· Starting October 29th, Google Play will require crypto wallet apps to be licensed and meet industry standards in 15+ regions including the US and EU
· In the US, developers must register as money service providers or remittance institutions; in the EU, they must register as crypto asset service providers (CASP)
· Google clarifies that non-custodial wallets are not affected by the new rules, addressing previous controversy over app removals
Why It Matters
· The new rules may accelerate compliance for custodial crypto wallets, strengthening KYC and anti-money laundering measures
(Translation continues in the same manner for the rest of the text)Why It Matters
· Data access fees may weaken the competitiveness of open banking and open financial models, limiting the development space for emerging payment and crypto services.
Capital Layout
Tether and IDG Capital Lead $16 Million Financing for Cross-Border Payment Provider Transak
Key Highlights
· Cross-border payment infrastructure company Transak receives $16 million strategic financing led by Tether and IDG Capital to expand stablecoin payment network
· The platform has processed over $2 billion in transactions, with approximately 30% from stablecoins, covering 75 countries and 450+ applications, serving fiat and stablecoin conversions for over 10 million users
· Transak holds multiple regulatory licenses and plans to expand into Middle Eastern, Latin American, and Southeast Asian markets
Why It Matters
· Stablecoins are becoming the underlying payment network globally, with capital investing in compliant cross-border infrastructure to accelerate emerging market adoption
Coinbase Restarts Stablecoin Bootstrap Fund to Enhance DeFi Liquidity
Key Highlights
· Coinbase, through Coinbase Asset Management, restarts Stablecoin Bootstrap Fund, with initial funds targeting Aave, Morpho, Kamino, and Jupiter
· The fund previously provided initial USDC liquidity to protocols like Uniswap, Compound, and dYdX in 2019, and now USDC's annual on-chain transaction volume reaches $2.7 trillion
· The new fund aims to provide deeper stablecoin liquidity for mature and emerging protocols and collaborate with early teams to drive stablecoin growth
Why It Matters
· Top trading platforms directly injecting funds may enhance DeFi stablecoin market depth, accelerating stablecoin adoption in on-chain finance
(Translation continues in the same manner for the rest of the text)· Launched EVM-compatible Layer 1 blockchain Arc, using USDC as Gas, positioned for payment, foreign exchange, and capital market applications.
· USDC circulation increased by 90% year-on-year to $61.3 billion, with on-chain transaction volume reaching $5.9 trillion, market share rising to 28%.
Why It Matters
· Self-developed chain can strengthen USDC's foundational position in payment and settlement domains, directly participating in stablecoin infrastructure competition.
Binance Collaborates with Spanish BBVA to Provide Off-Chain Custody Services
Key Highlights
· Binance introduces Spain's third-largest bank BBVA to provide off-chain custody for clients, storing assets in US Treasury bonds held by BBVA, which can also be used as trading margin.
· This arrangement isolates trading from funds, reducing counterparty risk in case of exchange bankruptcy.
· This move continues Binance's strategy of introducing third-party custody (such as Sygnum, FlowBank), responding to market concerns about fund safety after the FTX incident.
Why It Matters
· Strengthens user asset isolation mechanism, helping to improve exchange compliance and market trust.
Worldcoin Competitor Humanity Protocol Launches Mainnet with $1.1 Billion Valuation
Key Highlights
· Hong Kong-based decentralized identity network Humanity Protocol launches mainnet with a $1.1 billion valuation, using zero-knowledge Transport Layer Security protocol (zkTLS) to connect Web2 credentials with Web3 services.
· zkTLS allows users to verify frequent flyer, financial, and educational qualifications without disclosing underlying data, avoiding biometric privacy risks.
· Future plans include expansion to on-chain ticketing, decentralized governance, and anti-Sybil attack platforms.
Why It Matters
· Provides privacy-first identity verification infrastructure, potentially challenging Worldcoin's dominant position in decentralized identity and "human proof" tracks.
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